Jan 4 ITT Educational Services Inc said
it will pay $46 million to Sallie Mae Corp, the largest
U.S. student lender, to settle litigation related to a loan
agreement between the two.
ITT has risk-sharing and guarantee agreements with some
lenders that provide private education loans to its students.
Sallie Mae filed the lawsuit in July 2011 alleging that ITT
breached the terms by failing to pay some due amounts under the
agreement signed in July 2007. The payment will be made by Jan.
The for-profit education company will record an after-tax
charge of $13.2 million, or about 56 cents per share, during the
quarter ended December, it said in a filing.
Analysts were expecting ITT to report a fourth-quarter
profit of $1.88 per share, according to Thomson Reuters I/B/E/S.
ITT shares rose marginally to $19.39 after the bell on
Friday. They had closed at $19.29 on the New York Stock